Home Buying in 92009>Question Details

Mag, Home Buyer in 92009

Own outright in Carlsbad; want a new home, but don't want to do the apartment move between, Do any of the local builders do buy-outs anymore?

Asked by Mag, 92009 Wed Aug 18, 2010

Really don't want to do the apartment or condo rental between as we are older and it would entail two moves. Although we own our property outright, we can't afford to purchase a new home without the equity from the existing home. We've thought about re-mortgaging this home and using the cash to partially buy another, but that would leave two mortgage payments, a risky deal right now.

Help the community by answering this question:

Answers

17
Homertsimpson’s answer
Always glad to help!

Yes that's correct; its sounds like you have a good handle on how selling your current home and property taxes will work for you.

As you probably know there are many great areas inland to choose from and to assist you better it would be helpful it I knew what type of home you're both looking for and with what specific amenities. For instance, are you looking open land, a pool, a great garden area, large trees, mature landscape, view of the beach, downtown area, private gated community, I'd love to better assist you in finding the right home so let me know how I can help!

Have a great day!!

Keith E. Green
"Helping you get back HOME"
(619) 726-8660
Travel@cox.net
0 votes Thank Flag Link Fri Aug 20, 2010
You really don't need to limit yourself to builders who do buy-outs. I've helped sellers get their house sold and move rigtht into a new home.

Your close dates and lender payoff will be coordinated by escrow.

First, I'd be lining up some houses you like. Start making visits, and narrowing down your selection. Then, you can list your home subject to finding suitable housing, but you may not have to, and I wouldn't add a rent-back at that early time, it might limit buyers. If you have a solid offer come in, and you haven't found a replacement house, you can ask for a 45 -day escrow to buy a little time. But, you'll have been looking at houses already, right? So, you may already have a house or two in mind to submit offers on. Your agent will already have spoken to the listing agents to get a handle on their seller's time frames. Your offer will depend on the close date of your current home - usually the day after.

Enjoy your home search!

Cory
1 vote Thank Flag Link Thu Aug 19, 2010
This sounds like a situation for a bridge loan. Take out a bridge loan against your existing residence and use the loan proceeds to purchase the new home (or use as down payment on new home). Once you've moved out of your previous home, sell it and use the proceeds to pay off the bridge loan.

Much easier than moving twice.
0 votes Thank Flag Link Fri Jun 26, 2015
I have not heard of any builders doing buyouts, do you want a brand new home or are you open to what is available?

You may wish to avoid the new homes as they may have more taxes. You should be able to transfer your prop 13 tax rate to the new home but new homes ussually have additionalal assesment district and or mello roos taxes. This could raise your tax rate by hundreds of dollars every month, you could pay $500 more a month in taxes if you do it wrong. Check with the county recorders office before buying anything to know what your new tax rate will be, before closing on anything.

A good agent will make the arangements you need to make the transaction without renting anything. If you need the name of an agent that can help you with that please contact me, I know of one that works in your area.

Corey La Scala below sounds like a good agent too. But really, a good agent will help you avoid the problem.
0 votes Thank Flag Link Mon Jun 17, 2013
Thank you both. We're looking at some new homes today just for reference.

As for Prop 60, unfortunately, the sales price is what wiull set the porting values, per the following:

When making the "equal or lesser value" comparison, is a simple comparison of the sales price of the original property and the purchase price of the replacement dwelling all that is needed?

No, the full cash value of the original property as of the date of its sale must be compared with the full cash value of the replacement property as of its date of purchase or completion of new construction. However, property tax laws presume that the purchase price paid in a transaction is the full cash value unless evidence shows that the real property would not have transferred for that price in an open market transaction.

If the full cash value of the replacement dwelling does not satisfy the "equal or lesser value" test, can a claimant receive partial benefit?

No. Unless the entire replacement dwelling satisfies the "equal or lesser value" test, no benefit is available. It is "all or nothing." Partial benefits are not granted.

So, again, unless we move inland...we're not going to consider that as part of the equation. We'll see if there is anything new that catches my spouses fancy and if not, return and see if you may have something recent that may be a fit.

Thank you again.
0 votes Thank Flag Link Fri Aug 20, 2010
Hello Magnumforc, usually what we find when homes are not selling is that they are over priced; however in this market I'm very suspect that something else is working against all seller's right now. It's very complicated but basically what's happening right now is people are very nervous about making darn near any financial move, obviously because of the current world economy. But even more disturbing is the continued falling home prices which always make any buyer's out the feel like they need to wait it they can. Combined that with the First Time Home buyer $8,000 tax credit that was recently taken away and what we're now finding is that there are quit a few less buyer's to purchase homes right now.

So bottom line is that with fewer buyers available to purchase homes, and the highest percentage of buyer's purchasing homes in the range of about $250,000 - $450,000, anyone outside that price range will have a much tougher time getting there home sold right now.

Solutions, either try and sell your home now and take what you can get for it, or hold on to it and rent it out. As long as you keep a 70% Loan To Value on this home you'll be able to use that rental income to purchase another home right now. Then you'll need to borrow money from that rental property now before it becomes a rental so the loan you get is considered "Owner Occupied"; meaning you'll get a better rate because it's owner occupied.

Of course if you do find a builder willing to take your home on the purchase of one of theirs that's may solve your home scenario but remember, just like when selling a car to a dealer, a builder most certainly will not give you anywhere close to top dollar.

I hope this information helps you and have a great day!

Keith E. Green
(619) 726-8660
Travel@cox.net
0 votes Thank Flag Link Fri Aug 20, 2010
There could be a few reasons the homes on your street aren't selling, These may be reasons you wouldn't face at all. If you'd like, email me, and I can look into why these homes could be sitting.

I can send you listings of homes in your area that have sold, homes in escrow, and homes on the market now. You'll be able to see what the current activity looks like beyond your street, by looking at the listing date, the date a home went into escrow, which homes are sitting, and which sold faster. You may find a pattern in pricing, location, house condition, etc. I can tell you that upgraded homes sell faster than the same model that has no updates, so you could find your home selling faster, and for a bit more.

Even in a bad economy, buyers like what they like. And I understand your frustration with Prop 60; I have several buyers moving inland when they're ready to downsize. There are a lot of great communities inland and in East County; I can list several!

There is a Prop 60 provision though, and I don't know if it'll help you. According to the State Web site, your replacement property can be "110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property." Here's the page address:
http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#2

Please let me know if I can be of any help! I may be able to suggest some areas you might like, that will work for you financially. I'd like to think you could make it work AND love your new home!
0 votes Thank Flag Link Fri Aug 20, 2010
Thanks very much for some great advice. We're in the position of not needing to finance a down payment, just concerned that in the current market homes are stagnating too long before selling. For example, there are two homes on our street for sale, one identical model to ours with many lookers and no takers, and another with few lookers even.

The one identical has no custom features and is priced about 40K off the mark in our estimation, but, even more troubling is a foreclosurethat is the same model a block away that is about 90K below what we believe ours is reasonably worth. And, no takers on that one either.

Porting taxes is an issue as the new homes we're looking at all cost more than the home we're selling. Bad news in the current market. Porting taxes was a great idea for those of us over 55 when the market was good, and moving to a smaller retirement home was cost effective. Now the smaller new home costs more than the larger older home we're trying to sell!

I suppose we're in the same boat with many. To downsize with a new home, we're forced to move further inland, and the lower home acquisition costs are offset with increased taxes and utility bills to cool and heat. So there may be no real savings in the long run at all.
0 votes Thank Flag Link Thu Aug 19, 2010
@Keith,

I do not know if you were referring to my response. If you were, I was not referring to Private Money or Hard Money. I have a choice of two Regional Banks and one Credit Union that offer this product.

Most successful Realtors don't arrange financing. They aggressively list or sell real estate. They know they can't be an expert in everything. They are smart enough to know their limitations in this area. .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Thu Aug 19, 2010
If you let me know what price range and area you're looking in I'll set you up to receive daily list of homes that match what you're looking for. Then you can see what's available right now and make sure you're able to locate the right home for your particular needs.

While we're doing that we can arrange some interim short term financing options so you'll be able to have the money you need to purchase your new home and we can then work on getting your existing home sold.

I think it's worth mentioning that you should be careful when using private money as a short term solution because many times that kind of money can be very expensive and risky. It might be a good ideal to speak with your attorney and tax accountant about the details of selling your current home and purchasing another one.

Also you should check with the county tax assessor's Office because you may be able to transfer your existing lower property tax basis to the new property; or at least part of it. Here's the link to the county tax assessor so you can call them yourself for the details: http://arcc.co.san-diego.ca.us/default.aspx

If you'd like professional help with the above scenario, and someone with over 27 years of real estate experience, who'll gladly speak with your attorney and/or tax accountant on your behalf, please call or email me ASAP!

Keith E. Green
(619) 726-8660
Travel@cox.net
0 votes Thank Flag Link Thu Aug 19, 2010
I don't think you'll find a Builder to take on this type of risk in today's market.

We have a few Portfolio Lenders that will Cross-collateralize your current residence with your purchase, allowing you to buy prior to selling. Similar to the old Bridge Loan. May be an option for you to look at in more detail. .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Wed Aug 18, 2010
I know a guy that might buy your home, however, putting your home on the open market usually will get you the highest offer. If you want to talk with my guy, or you want to know what your home is worth, or you want to list it, give me a call, I will see what we can do to help.


Let me know if I can help you in any way!


Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)



California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
800-975-7481 x 111
Fax: 760-946-7894
JoanWilson@prusd.com
License # 01341483


Find Your Dream Home:
http://JoanWilson.PrudentialCal.com
0 votes Thank Flag Link Wed Aug 18, 2010
Your situation is very common to many sellers. If I were you I would list my property, stating that it is subject to finding a suitable replacement property and also stating in the listing that you may require a 'seller rent back' (you become a tenant to your new buyer after close of escrow) from your buyer for up to a stipulated amount of days, after close of escrow. This way you would be able to utilize your proceeds to purchase your new home and stay in your 'sold' property while you are waiting for your new home to close. Hope this helps, Frank Kattus - Realty Executives. (760)889-0527.
0 votes Thank Flag Link Wed Aug 18, 2010
Generally builder's feel the same way right now... it's too risky right now to hold inventory that may not sell for many months and remember they're trying to sell what they have which is already taking too long; short answer is, I haven't heard of any!

Are you under the impression that your home won't sell right now and if so why?

Remember if you're selling a home and thinking you probably won't get top dollar right now, the next home you purchase will also most likely be selling for less then the owner would have wanted; we're all in this together!

If you're serious about purchasing another home right now then let's first see what your home might sell for right now, and about how long it will take. I'd be happy to email you a Home Evaluation Report that will give you an idea of what your home's value is right now and about how long it might take to sell.

The key is to quickly determine value and market time on your home so we can begin to plan the best strategy for helping you get the cash you need to purchase your New Home! By the way where are you looking to purchase next?

Email me the property information so I can start on your Home Value Report at: Travel@cox.net

Keith E. Green
(619) 726-8660
0 votes Thank Flag Link Wed Aug 18, 2010
Hello,

This could be a perfect situation to have a private lender help you out . My family has some funds that we want to use for something such as this.


If you are willing to place your current home on the market, then this is what we could do:
* Lend you the money for a down payment, and record a lien on your free and clear property for the amount owed. All points and interest would be rolled into the loan, so you would not have to pay monthly

* You can go ahead and purchase your new home with the down payment while your existing home is on the market.

We'd want to make sure that you are pre-approved with a lender for the new purchase of course. We'd also want to make sure that your existing home is priced right so that it will sell quickly..

This could work - so let me know if you want to look more into this.

Thanks,

Joe Rennick
619.302.9139
Joe@WhisselRealty.com
DRE Lic# 01871454
0 votes Thank Flag Link Wed Aug 18, 2010
I agree.
I think a few builders might consider it since you do own it outright but your best bet would probably be listing your home on the condition that you find a suitable replacement. That way it's an easy transition for you and no 2 mothly payments.

Let me know if that's what you'd like to do. I've done this several times before.

Http://www.dimatteogroup.com
Danel Di Matteo
Century 21 Award
(619) 990-2456
0 votes Thank Flag Link Wed Aug 18, 2010
A builder in Valley Center would consider it. Why not make the sale of your current home contingent on finding suitable replacement housing?

Diane Conaway, RE/MAX United, (760) 749-2888
DRE #01207791
0 votes Thank Flag Link Wed Aug 18, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer